I. Loans
Loan (electronic IOU credit loan) is simply understood as borrowing money with interest.
Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out in the form of loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
Two. Loan type
1. Loan term
(1) medium and long-term loans-the loan term is more than 5 years (excluding).
② Medium-term loan-the loan term is 1-5 years.
③ Short-term loan-the loan term is within 1 year (inclusive).
4 overdraft-a loan with no fixed term.
Third, the loan company.
1. The term "loan company" is limited in China, and it is different from domestic commercial banks, finance companies, auto finance companies and trust companies that can handle loan business in terms of definition and business scope. On August 1 1, 2009, the CBRC issued the Notice on the Management Provisions of Loan Companies (No.76 of 2009), which standardized the behavior of loan companies in China.
2. Advantages of loan companies
(1) Due to the high marketing cost of bank micro-loans, it is difficult for small enterprises to apply for loans directly from banks, resulting in small enterprises having to turn to financing institutions such as loan guarantee institutions for help when they have financing needs. The cost for loan guarantee institutions to select customers is relatively low. Recommending high-quality projects to cooperative banks to improve the success rate of financing will reduce the marketing cost of bank microfinance.
② In terms of risk control of loans, banks are reluctant to invest in small loans. One of the important reasons is that the management cost of such loans is high, but the income is not obvious. For this kind of loan, the loan guarantee institution can optimize the management process, form personalized service of post-loan management, share the management cost of the bank and eliminate the worries of the bank.
(3) After the risk is released, the advantages of loan guarantee institutions are irreplaceable. The project of bank direct loan is risky, and the disposal of collateral often takes a long time, with high litigation cost and poor liquidity. The cash compensation of guarantee institutions has greatly solved the problems that banks are difficult to deal with. Some loan guarantee institutions can compensate after loans overdue 1 month (or even three days of investment guarantee), and the bank's non-performing loans will be eliminated in time, and then the loan guarantee institutions will resolve the risks through their more flexible handling methods compared with banks.